There are a few ways to do this:
1) You can make the field cross multiple pages and slide up to remove extra space.
2) You can use Conditional Formatting to reduce text size based on how much text is in the field (use the Length feature and multiple conditions).
3) If these don't suit, there's a technique called the Virtual List technique. Basically, it involves using a List() function to parse the large text block into individual records and then printing those individual records instead of a single field. (I don't remember who came up with it originally - Bruce Robinson, maybe? - or I'd give the appropriate attribution.) It's a little tricky to understand, but I've attached a sample file.
Basic VList.fp7.zip 21.0 K
If each paragraph is a single record you could do it. This would require more work though. There was a good example of this a couple years ago. Otherwise you create long layouts and have the fields shrink.